Panacea Biotech Limited vs. Commissioner Of Delhi Goods And Service Tax & Anr.

W.P.(C)/4133/2024HC DelhiGSTCNR DLHC01014499202403 April 2025Bench: HON'BLE MS. JUSTICE PRATHIBA M. SINGH,HON'BLE MR. JUSTICE RAJNEESH KUMAR GUPTA3 pages
For Petitioner: Mr. Rajesh Mahna, AdvFor Respondent: Mr. K.G. Gopalakrishnan, Ms. Nisha Mohandas, Mr. Kunwar Raj Singh, Advs. with Mr. Chandresh Kumar Gupta, Ward- 203& Mr. Poshinder Singh, LA DTT, GNCTD
AI SummaryRemanded

Facts

The Petitioner, Panacea Biotech Limited, a pharmaceutical company, filed a writ petition under Article 226 and 227 of the Constitution of India seeking a direction to the Respondents (Commissioner of Delhi Goods and Service Tax & Anr.) to remove outstanding demands and penalties appearing on the DVAT portal. The Petitioner stated that demands raised for the periods 2006-07 and 2007-08 were challenged, set aside, and amounts due were paid. The DVAT Appellate Tribunal also set aside penalties. The Petitioner claimed no demands were pending and a refund of Rs. 6,690/- had been allowed, with bank guarantees released. Despite this, the DVAT portal continued to show outstanding demands and penalties.

Held

The Court acknowledged that there was no doubt that the demands no longer existed against the Petitioner. Considering this, the six-week period proposed by the Respondent for clearing the DVAT portal was deemed too long. The Court directed that the Petitioner's DVAT portal be cleared within a period of four weeks from the date of the order. Additionally, in terms of DVAT 21, the Court ordered that the refund be processed to the Petitioner within the same four-week period, along with any applicable interest. The petition was disposed of in terms of these directions.

Key Issues

1. Whether the DVAT portal incorrectly reflects outstanding demands and penalties against the Petitioner, despite such demands having been settled, set aside, and payments made or refunds allowed? Contentions: Petitioner: Argued that all demands and penalties for the periods 2006-07 and 2007-08 have been settled, set aside, and paid. A refund has been allowed, and bank guarantees released. The continued incorrect reflection on the DVAT portal is erroneous and requires rectification. They relied on the fact that the Department had previously communicated the release of bank guarantees. Respondent: Under instructions, submitted that the DVAT portal would be cleared within the next six weeks.

Sections Cited

DVAT 21

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~46 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 4133/2024 PANACEA BIOTECH LIMITED .....Petitioner Through: Mr. Rajesh Mahna, Adv. versus COMMISSIONER OF DELHI GOODS AND SERVICE TAX & ANR. .....Respondents Through: Mr. K.G. Gopalakrishnan, Ms. Nisha Mohandas, Mr. Kunwar Raj Singh, Advs. with Mr. Chandresh Kumar Gupta, Ward- 203& Mr. Poshinder Singh, LA DTT, GNCTD. CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE RAJNEESH KUMAR GUPTA

O R D E R % 03.04.2025

1.

This hearing has been done through hybrid mode.

2.

The present petition has been filed by the Petitioner- Panacea Biotech Limited under Article 226 and 227 of the Constitution of India inter alia seeking issuance of an appropriate writ seeking a direction to the Respondents to remove the already settled demands against the Petitioner appearing on the DVAT portal.

3.

The case of the Petitioner is that it is a reputed pharmaceutical company engaged in the manufacture and sale of drugs, vaccines, medicines, supplements, etc., and was earlier having a TIN No. 07500103890 in the DVAT regime. It has migrated to the GST regime with GST No. 07AAACCP5335J1ZE. This is a digitally signed order. The authenticity of the order can be re-veri

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